Real Estate and Property Management Merchant Account is a special business account tailored for companies in these sectors. It enables them to process digital payments such as credit and debit card transactions. These accounts serve as a secure intermediary, handling the money transfer from customers to the business.

For real estate professionals, having such a merchant account expands their payment options well beyond the conventional methods of cash or checks. This includes the capability to accept payments online, via phone, and through mobile devices, which are crucial for contemporary businesses seeking to enhance client convenience and broaden their customer reach.

Real estate and property management businesses often need help with using standard merchant accounts such as PayPal and Stripe, along with other common payment processors and banks. This challenge stems from the inherent risks linked to their industry, which leads these platforms to classify such businesses as high-risk. Factors contributing to this categorization include a higher volume of transactions, large transaction sizes, and an increased likelihood of chargebacks and fraud, all more common in real estate transactions.

Platforms like PayPal and Stripe have specific criteria for the businesses they support and maintain lists of restricted or prohibited types of business. Real estate and property management often fall into these high-risk categories, which can complicate the effective use of these services. Partnering with these typical merchant accounts can lead to operational restrictions such as account freezes, failed transactions, and blocked funds.

Many merchant services providers are wary of partnering with real estate and property management companies due to three primary risk factors:

• Non-Physical Transactions: Property management companies frequently process payments using over-the-phone methods or through a "virtual terminal." Banks and processors see These payment methods as riskier because they lack the physical presence of both the card and the cardholder. This absence of physical verification heightens the risk of fraudulent activities, prompting a more cautious approach from financial institutions.
• High Chargeback Rates: The nature of real estate and property management often involves regular and sometimes disputatious interactions with tenants. Disagreements over services, fees, or property conditions can lead to a moderately high rate of chargebacks. Chargebacks occur when customers contest a charge on their credit or debit card, leading to a review and potential reversal of the transaction. This can impact not only the immediate financial stability of the business but also its standing with payment processors.
• Large Transaction Sizes: Compared to other sectors, transactions in property management are generally larger. This includes payments for rent, security deposits, or property services, which far exceed typical retail transaction amounts. Larger transactions are perceived as higher risk because they pose a greater financial risk in cases of fraud or disputes.

Given these risk factors, many merchant service providers exercise caution. They may choose to avoid partnerships with real estate and property management businesses, whether they are building managers, landlords, or other related service providers.

However, high-risk merchant accounts providers like Host Merchant Services are specifically designed to address the needs of businesses facing a higher risk of chargebacks and fraud. A Host Merchant Services real estate and property management merchant account includes enhanced fraud protection and more robust chargeback prevention mechanisms. These accounts are tailored to accommodate the greater risks associated with the supported business types, offering a more suitable solution for real estate and property management companies.

Merchant accounts designed specifically for real estate and property management offer a range of benefits that can significantly improve business operations and financial management.

• When you integrate with a merchant account from Host Merchant Services, your whole payment process is automated, enabling property managers to collect rent and other dues efficiently. This not only saves time but also minimizes the incidence of missed or late payments, leading to more predictable cash flow and streamlined management.
• Merchant accounts by Host Merchant Services feature enhanced security measures and compliance with the latest PCI DSS standards to safeguard sensitive payment information. This is crucial in an industry dealing with large monetary transactions, and this additional security layer is vital for reducing risks related to fraud and data breaches.
• Plus, specialized merchant accounts often provide cost-saving opportunities through reduced processing fees. For real estate and property management, options like Cost-Plus Pricing can substantially decrease transaction fees, resulting in significant annual savings.
• Additionally, these accounts support various payment methods—from traditional options like checks and bank transfers to contemporary solutions such as online payments, mobile apps, and contactless payments. This versatility enhances customer convenience, boosts tenant satisfaction, and may attract a broader customer base.
• Entering card information online is faster and easier than mailing checks. When using an online gateway, tenants don't have to worry about intercepting or bouncing payments. This also means quicker payments for property managers. Streamlining the payment process benefits everyone involved.

Once you're ready to begin, setting up a merchant account with us to process your real estate transactions is straightforward.

You'll need to provide:

• A voided check
• Proof of a business or personal bank account
• EIN or business number
• Previous processing history
• Bank statement for the last 3 months
• A fully compliant website
• Chargeback history

The more details you provide, the smoother and faster we can facilitate the application process.

Host Merchant Services collaborates with a wide range of merchants, including those considered "high risk" by banks. These merchants operate within industries prone to higher incidences of chargebacks, disputes, and fraud, often exacerbated by "card not present" transactions, which carry a heightened risk of fraud. These merchants frequently struggle to secure a high-risk account as many payment processors shy away from high-risk processing.

Even when they do find a "high-risk payment processor," they may still face frequent account holds, freezes, or closures. Host Merchant Services resolves these challenges by connecting them with high-risk merchant account providers who are eager to work with their business and equipping them with the necessary resources for their high-risk credit card processing needs.

At Host Merchant Services, we offer merchant accounts tailored to your industry. We use our banking relationships to apply for merchant accounts on your behalf. We find providers that match your business model and thoroughly review their merchants. This transparency ensures the provider fully understands your business before working with you. This approach increases the likelihood of finding a compatible merchant account provider and reduces the chances of experiencing holds, freezes, or shutdowns. This results in more stable credit card processing.